This article presents key macroeconomic indicators for Ukraine and the global economy as of April 1, 2025. The analysis is based on the latest data from the State Statistics Service of Ukraine, the National Bank of Ukraine, the International Monetary Fund, the World Bank, and the United Nations. Maksym Urakin, Director of Marketing and Development at Interfax-Ukraine, Candidate of Economic Sciences and founder of the Experts Club information and analytical center, presented an overview of current macroeconomic trends.
Macroeconomic indicators of Ukraine
The first quarter of 2025 was a period of slow but positive economic movement for Ukraine. According to updated estimates by the National Bank of Ukraine, the country’s real GDP grew by 0.5% year-on-year, indicating a gradual stabilization after an unstable start to the year. This growth is not high by international standards, but in the context of a full-scale war, constant threats to infrastructure and logistics, and limited access to capital, this result is seen as a positive sign.
“Half a percent GDP growth in the first quarter is more an indicator of the system’s viability than a sign of development. The domestic market has begun to revive, especially in consumption, logistics, and certain technology sectors. But so far, this is mainly growth “in place” — without investment momentum, without exports, without long-term resources,” explains Maxim Urakin.
Inflation remains one of the main challenges. At the end of March 2025, the annual inflation rate was around 12.6%, which is almost unchanged from February but shows a gradual slowdown. The NBU points to the impact of seasonal declines in food prices, currency stabilization, and prudent monetary policy as key factors restraining price growth.
“The main thing is to maintain a balance between fighting inflation and preventing a slowdown in economic activity. The National Bank’s monetary policy in the first quarter was quite balanced: on the one hand, it kept the key rate unchanged, and on the other, it provided soft intervention support for the hryvnia. But we are still far from exiting the inflation risk zone,” the expert emphasizes.
The state of foreign trade, on the contrary, points to deepening structural problems. According to preliminary estimates by the Center for Economic Strategy, the foreign trade deficit reached $3.6 billion in April, as a result of a significant excess of imports ($6.3 billion) over exports ($3.1 billion). According to analysts, the cumulative trade deficit for the first quarter exceeded that of the same period in 2024, despite activity in the agricultural sector and services.
“The worst thing is that this deficit is not situational, but structural. Imports of energy, equipment, chemical products, and transport remain dominant, while exports are mostly limited to raw materials. This threatens currency stability in the event of a cessation of international financial support,” comments the founder of Experts Club.
Against the backdrop of a growing trade gap, the level of international reserves remains a positive sign. According to the NBU, as of April 2025, reserves stood at around $42 billion, a historic high for Ukraine. This growth was made possible by further tranches of financial assistance from the European Union, the US, and the IMF, as well as successful currency operations by the National Bank on the interbank market.
“Reserves of over $40 billion are not just an indicator, they are a safety net for a country living in a state of constant risk. But we should not be tempted by this: it is a resource of trust that must be transformed into economic recovery, otherwise we will lose it again, as we have done in the past,” warns Maksym Urakin.
However, the debt burden remains high. According to the latest estimates, Ukraine’s total public and publicly guaranteed debt at the beginning of April 2025 was about $147.2 billion, or approximately 94% of GDP, of which more than $100 billion is external borrowing. This highlights the country’s dependence on external assistance and international financing, in particular from the IMF, the EU, and the World Bank.
Global economy
Global economic indicators at the beginning of April 2025 point to a slowdown in growth, accompanied by continued inflationary pressures, particularly due to new trade risks and geopolitical instability. According to the IMF, global growth has accelerated its decline to 2.8% in 2025, one of the lowest levels in decades . Inflation is gradually declining in most regions, but remains above target, especially in developing countries .
Macroeconomic uncertainty has intensified amid trade protectionism, rising energy prices, and geopolitical challenges, making forecasting much more difficult. Central banks that have not yet tightened policy are in wait-and-see mode, and investors are becoming more cautious. Morgan Stanley and S&P Global forecasts point to a further slowdown in global GDP to 2.2–2.9% in 2025, which is weighing on investor confidence.
According to the BEA, US GDP contracted by 0.3% in the first quarter of 2025, the first decline since 2022. This was mainly due to a sharp increase in imports (pre-purchases ahead of possible tariffs) and a reduction in government spending. However, final domestic demand remained relatively stable (+3%). Inflation in March/April was approximately 2.3–2.6% (PCE), in line with the regulator’s expectations; the Fed is keeping rates at 5.25–5.5% pending signs of stabilization.
According to official data, China’s GDP grew by +5.4% y/y in Q1 2025, in line with the government’s target of around 5%. However, fiscal and monetary constraints, particularly in the real estate sector, are slowing down growth. By May, budget revenues had fallen by 0.3% y/y, indicating a slowdown in economic activity. Stimulus measures are being introduced in response, but their effect is still uncertain.
The European Commission forecasts annual GDP growth of +1.1% for the EU and +0.9% for the eurozone, with a marked improvement in the first quarter (+0.6% q/q), the highest figure since 2022. Inflation in March/April was below 2%, gradually approaching the target level.
According to the ONS, in the first quarter of 2025, the UK showed GDP growth of +0.7% q/q, making it the leader among the G7. In annual terms, growth was approximately +1%. Inflation in April was around 3.4%, prompting the Bank of England to remain cautious in lowering rates (from 5.25% to 4.5%). However, exceeding the inflation target is holding back the economy’s recovery.
In the first quarter, Turkey showed positive growth of around +2.3% q/q, or ≈+3.0% y/y. Inflationary pressures remain extremely high at ≈38–39% in March/April, despite measures taken by the central bank.
The Indian economy continues to show one of the highest growth rates among major economies: in the first quarter of 2025, the rate was +7.4% y/y, with inflation under control: CPI — ~3.2% in April. The forecast for the 2024–25 financial year is +6.3–6.5%.
In the first quarter, Brazil managed to achieve GDP growth of +1.3% q/q (≈+3.5% y/y), which is the best result in the last two years. However, inflation rose to 5.48% in April, the highest level since February 2023, and is a source of serious concern.
“The world at the beginning of the second quarter shows promise, but at the same time high instability. The US has fallen into recession, but domestic demand is still holding up. Europe is slowly emerging from the crisis, and the UK is showing resilience. China is stable in terms of growth but weak in consumption. India is a model of dynamism and innovation. Turkey is on the brink of an inflationary crisis. Brazil is moving forward but is at risk due to rising prices. Ukraine must now decide whether to use the flow of imported resources solely to offset the deficit or turn it into an opportunity for a technological and industrial breakthrough,” said Maxim Urakin.
Conclusion
At the beginning of the second quarter of 2025, Ukraine’s economy is in a phase of sustained equilibrium. Modest growth, controlled inflation, and record reserves are the basic factors of stability. However, a deep trade deficit, debt burden, and lack of investment drivers remain key risks for the medium term.
The global economic picture remains mixed, with clear geographical imbalances. Ukraine is showing resilience, maintaining growth and record reserves, while facing challenges in foreign trade. Global markets, from the US to India, are shaping new conditions for strategic solutions to these challenges.
A more detailed analysis of Ukraine’s economic indicators is available in the monthly information and analytical products of the Interfax-Ukraine agency, Economic Monitoring.
Head of the Economic Monitoring project, Candidate of Economic Sciences Maxim Urakin
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